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Accelerate the Path to Growth
July 9, 2015
Connecting to the Hispanic Consumer
Accelerate the Path to Growth 2
Copyright © 2015 IRI
Confidential & Proprietary
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Today’s Discussion
Current Hispanic Market Dynamics
Leveraging Hispanic Path to Purchase
Case Studies/Success Factors in Winning Hispanic Consumers Recommended Actions Univision’s View of the Impact of Hispanics on the CPG/Industry
Accelerate the Path to Growth 3
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Current Hispanic Market Dynamics
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Why Should Today’s Marketer Care About Hispanic Consumers?
Hispanics Represent the Majority of Future Pop Growth • Growth rate is 3X the U.S. rate • Will account for over half of the population growth by 2020
Hispanic Households Have Higher Spending Power • Larger family size results in higher household spending • 10 years younger than Gen Pop -- entering prime earning
years • Spending power increases dramatically in the next 10 years
Substantial Opportunities • Opportunities for Marketers to get ahead of the curve and
gain their share of Hispanic sales and partner with key retailers focused on this segment
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Hispanics are Forecasted to Account for >50% of Growth Population Growth by Ethnicity
Hispanic Consumers Outpacing Other Ethnic Groups; Will Account for 50%+ of the Growth Over Next 5 Years
309
334
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13
4
4 1
10%
53%
16%
15%
5%
Accelerate the Path to Growth 6
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Hispanic consumer purchasing power is growing rapidly
Source: Selig Center for Economic Growth
Hispanic Consumer Purchasing Power
2015
$1.5 Trillion
1990
$212 Billion
2009
$978 Billion
+ 53%
+ 50%
+ 130%
2000
$489 Billion
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They bring
their kids
shopping
73%
live in HH’s
with 3+
members
70%
of Hispanics
are under
age 40
They are
more likely
to buy online
vs. Gen Pop -
especially
CPG
Hispanics are young, live in larger HH’s and have unique shopping habits
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Hispanics are very active online…
31%
59%
64%
53%
Non Hispanics
Spanish Lang Preferred
Bilingual
English Lang Preferred
3+ Hours/Day Spent On Internet Using Smartphone: Millennials
50% of Hispanics said they’ve
purchased grocery items online (at least 1x/year)
Compared to 40% Gen Pop
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The Hispanic Path to Purchase
For Non-Food CPG Products
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In some ways, motivations for the Hispanic Path to Purchase are very similar to Gen Pop…
78% 80%
21% 20%
Planned Unplanned
Shopping Trip Planning
HISPANIC GENPOP
0% 10% 20% 30% 40%
Was there anyway
One-stop shopping
Convenient from home
Easy to find what I…
Great sale pricing
Store is clean
Convenient store hours
HISPANIC GENPOP
Reason Chose Retailer
* Who Buy Non-Food CPG Products Which Include: OTC Medications, Household Cleaning
Products, Beauty Care and Personal Care products
*Spanish-Preferred Hispanics
do prefer bilingual signage, employees that speak Spanish and products from home country.
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…However, there are notable differences. Hispanic shoppers are significantly more likely to…
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Buy other products in addition to what they originally planned
Buy a product because it was requested by a family member
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Visited more online sites and use social media to get info about the category prior to shopping
Browse in-store for products and spend more time shopping
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Mobile plays a prominent part in helping Hispanic shoppers* connect to what they need prior to going to the store.
38% 53% 45%
to interact with a retailer page
(vs. 31% for Gen Pop)
Connect on Social Media
Read Product Reviews
Check Location Finder
* Who Buy Non-Food CPG Products Which Include: OTC Medications, Household Cleaning
Products, Beauty Care and Personal Care products
on their smart phones before buying
(vs. 43% for Gen Pop)
to find where an item can be purchased
(vs. 36% for Gen Pop)
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Two out of three Hispanic shoppers* used their mobile devices for some type of pre-tail use - significantly more than Gen Pop.
64% 53%
36% 47%
HISPANICS GENPOP
Did Not Use Mobile Device Prior to Shopping
Used Mobile Device Prior to Shopping
USED MOBILE DEVICE AS PART OF THE PRE-TAIL SHOPPING PROCESS
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Hispanic shoppers* are tech savvy, and mobile is an integrated part of their entire shopping process.
15%
SAW ADVERTISING/EMAIL FOR CATEGORY
vs. 12%
SMART PHONE USES
11%
READ ABOUT CATEGORY ON BLOG
vs. 7%
* Who Buy Non-Food CPG Products Which Include: OTC Medications, Household Cleaning
Products, Beauty Care and Personal Care products
80%
USE A SMART PHONE
vs. 74%
28%
LOOKED UP A PRODUCT ONLINE TO LEARN MORE ABOUT IT
25%
RESEARCHED/GOT PRODUCT INFO
vs. 17%
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Mobile use during the shopping process among Hispanics is increasing.
77%
5%
18%
FREQUENCY OF MOBILE DEVICE USE DURING SHOPPING PROCESS VS. YEAR-AGO
More Less The Same
* Who Buy Non-Food CPG Products Which Include: OTC Medications, Household Cleaning
Products, Beauty Care and Personal Care products
Three out of four Hispanic shoppers* are using their mobile devices more frequently when they shop now than they did a year-ago.
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For Household Cleaning Products, the role of mobile is especially important in Hispanics’ path to purchase.
Research a Cleaning Product online while physically in the store (vs. 37%)
Check a store locator (vs. 36%)
Interact with retailer pages via social media (vs. 31%)
Search for sales/deals on retailer websites (vs. 35%)
Read about Cleaning Products on a blog (vs. 18%)
51%
51%
46%
43%
30%
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Over half of Hispanic shoppers* who planned their purchases remained open to changing their mind once in-store.
54%
47%
HISPANIC GENPOP
% OPEN TO CHANGING MIND IN-STORE
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Hispanic shoppers* are significantly more likely to be influenced by online factors when making a purchase.
0%
5%
10%
15%
20%
25%
30%
Online/Mobile
Influences
(net)
Information
from retailer
website
Reading an
article online
Seeing
product on
social media
HISPANICS GENPOP
INFLUENCERS OF DECISION TO BUY PRODUCT
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Showrooming is also prominent among Hispanic shoppers* for Beauty and Cleaning products - more so than Gen Pop.
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
Visit a store(s) toexamine product(s)
before buying online ata lower price
Beauty Products Cleaning Products Personal Care Products
Hispanics Gen Pop
Beauty
Pro
ducts
Cle
anin
g P
roducts
Pers
onal Care
Pro
ducts
Learned about a product in-store, and used your smart phone to buy it online
VIEWING IN-STORE AND BUYING ONLINE
* Who Buy Non-Food CPG Products Which Include: OTC Medications, Household Cleaning
Products, Beauty Care and Personal Care products
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Are influenced by magazine ads (28%)
Browse Retailer website for info (44%)
Connect to loyalty card to pay/pts. using mobile app (30%)
Look for sales/deals on Retailer sites & Deal sites before shopping (61%)
Scan Mail & Store flyer for deals (57%)
Read a favorite blog (34%)
Decide at shelf based on price/ sale (36%)
Digital, social and mobile media have changed the shopper journey
A Beauty Path to Purchase Example
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Hispanic Path to Purchase – The Key Insights
Hispanic shoppers have integrated mobile more deeply into their shopping journey - and they’re using it more now than ever. Hispanics spend more time in store and spend more money on CPG shopping annually.
They’re open to changing their minds in-store - and often buy products in addition to the ones that they had originally planned.
Their product purchasing is more readily influenced by requests from family members.
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Accelerate the Path to Growth 22
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Best Practice Case Studies & Success Factors in Winning Hispanic Consumers
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Success Factors in Winning Hispanic Consumers
Deep understanding of Hispanic Consumer Lifestyles Consistent and Sustained Communication Establish a Personal Culturally Relevant Connection
Relevant Content
Customization
Sharing
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Accelerate the Path to Growth 25
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Hispanics Are Driving 44% of Total Beauty Category Growth
Skin Care Hair Coloring
Conditioner Cosmetics Shampoo
+3% Hispanic
+0.2% NH
+1% Hispanic
-0.5% NH
+9% Hispanic
+5% NH
+5% Hispanic
0% NH
+7% Hispanic
+4% NH
Source: IRI Ethnic Workbench MULO POS Data – Latest 52 Weeks Ending Dec 29 2014
$ SALES GROWTH 2014 vs. YA
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Hispanic Women Are Very Beauty Involved
“More is MORE. I want to look like I’m
trying”
“When you look good on the outside you feel better on the inside”
“If I walk outside without lipstick, I feel naked! We put
makeup on to give birth!.” Sophia Vergara - Shape Magazine
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Success Factors in Winning Hispanic Consumers
Consumer Understanding Focus on Foundation; the cosmetic purchase consumers see as most risky and the sku that has most loyalty
Establish a Culturally Relevant Connection P&G has a separate Cover Girl to relate to each
target. Sofia Vergara and Becky G have been used as Cover Girl's Hispanic Brand Ambassadors.
Cover Girls is the No1 Foundation among Latinas and grew $ sales 3X vs NH
Consistent Communication Leads to Results
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Success Factors in Winning Hispanic Consumers
Source: Nielsen TV Brand Effect, Based on Survey Responses Among Women18-49. 1/1/112 – 12/28/2014
34%
17%
9%
15%
29%
10% 9%
6%
General Recall Brand Recall Message Recall Likeability
SL TV EL TV 34%
16%
8%
14%
26%
10% 8% 8%
General Recall Brand Recall Message Recall Likeability
SL TV EL TV
CoverGirl General Ads Performance Jan 2012 – Dec 2014
Among Hispanics W18-49 Among Bilingual Hispanics
W18-49
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Success Factors in Winning Hispanic Consumers
Identifying the Opportunity Aveeno was slightly underdeveloped with Hispanic $ sales
Test and Learn Aveeno & Jennifer Aniston’s Ads (2013) 2014 Increase in SL of 166% vs YA 22% of its media is on SL TV Results to Date Hispanic $ sales grew 13% in 2014 vs. YA while NH $ sales grew 7% vs YA
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Daily Moisturizer Ads Performed Stronger on SL TV Across Metrics, Especially among Bilingual W18-49
Source: Nielsen TV Brand Effect, based on survey responses among Hispanic W18-49 and Bilingual Hispanic W18-49 (June 6, 2013- March 23, 2014). :15 and :30 creatives combined for this analysis
Aveeno Daily Moisture: SL B-Cast vs. EL B-Cast
49%
29%
19%
26% 30%
15%
5% 5%
-10%
0%
10%
20%
30%
40%
50%
60%
GeneralRecall
BrandRecall
MessageRecall
Likeability
SL B-Cast EL B-Cast
55%
36%
24%
31% 32%
9% 5% 6%
0%
10%
20%
30%
40%
50%
60%
GeneralRecall
BrandRecall
MessageRecall
Likeability
SL B-Cast EL B-Cast
Among Hispanic HW18-49 Among Hispanic Bilingual HW18-49
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Success Factors in Winning Hispanic Consumers
Source: 1. Nielsen Adviews Spanish Language Yearly Spend Ending 12/30/12 vs. 12/30/13 vs. 12/28/14. Note: National TV data is based on Live viewing. Spot TV data is always based on Live Plus viewing. 2. Symphony IRI Ethnic Workbench MULO POS Data – Calendar Year 12/29/13 vs. 12/28/14. 3. IRI
Cheetos Hispanic Panel – 52 Weeks ending 12/29/13 vs. 12/28/14.
Cheetos Focuses on Hispanics
Cheetos recognized a need to focus on Hispanics, their best consumer
Cheetos grew their Spanish Language TV investment from 2012-2014 +444%
28% of the 2014 Cheetos TV spend was on SL, versus 17% in 2013
Cheetos Wins with Hispanics
Hispanic YA consumption grew +8% vs. +4% among Non-Hispanics
Hispanics contribute 26% of total Cheetos unit sales vs. 25% YA
Spanish-Preferred Hispanics are Cheetos’ best consumer with the highest dollar sales per buyer (+$5.10) and unit sales per buyer (+2.9).
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Success Factors in Winning Hispanic Consumers
Cheetos Grew Its Word-of-Mouth Among Hispanics 11X That of Non-Hispanics
1.53%
0.59%
0.65%
0.57%
2014
2013Non-Hispanic
Hispanic
% of People Mentioning Cheetos
Cheetos Ads Are Outperforming On Spanish Language Among Hispanic Millennials
47%
34% 28% 30%
33%
20%
12% 15%
General Recall Brand Recall Message Recall Likeability
Cheetos on SLTV Cheetos on ELTV
Cheetos Brand Effect Among Hispanics 18-34
Source: Nielsen TV Brand Effect, Based on Survey Responses Among Adults 18-34. 1/1/14 – 12/31/2014. EL includes Cable and Broadcast.
Source: © 2014 Keller Fay Group, Source: TalkTrack®, December 2014 YTD vs. December 2013 YTD. Base: Respondents Who Mentioned Food.
Hispanic Cheetos Word of Mouth has grown YOY
+159% vs. +14% Non-Hispanic
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Recommended Hispanic Actions
Understand Your Consumer – What About Hispanics?
Qualify new products and packaging with Hispanics
Develop a single creative brief when possible
Launch concurrently in Spanish and English
Speak to Hispanics in contextually relevant media
Track Results – You get what you Measure
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Accelerate the Path to Growth 34
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Univision’s View of the Impact of Hispanics on the CPG/Industry
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Impact of Consumers on the CPG Industry
Hispanics represent all the growth
Hispanics are influencing mainstream America
Spanish is the language of the Heart Research will continue to be key
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Accelerate the Path to Growth 36
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THANK YOU!!
FOR MORE INFORMATION:
Staci Covkin
Principal, IRI Consumer & Shopper Marketing Group
Staci.Covkin@IRIworldwide.com
(973) 449-3457
Liz Sanderson
Vice President Strategy and Insights, Univision Communications
lsanderson@Univison.net
(212) 455-5328
Questions? Ask now or feel free to contact us after the event!
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